Today, we can name at least 10 male directors of top companies whom we actually read, talk, or write about. From Shark Tank viral moments to Deepinder Goyal’s Chief of Staff application, we have seen men occupying the terrain of corporate decision-making but what about women? Have they arrived, or have they been left behind?
We walked into the time travel capsule filled with data; the numbers could actually talk more than what it looks like culturally. Let’s take a look at the diversity of Indian boards and see for ourselves if women finally managed to open doors.
Understanding the Trends: A Data Driven Approach
The evolution of board gender diversity is followed by examining data from top-listed 500 companies (Nifty 500) extracted via Prowessdx. The analysis focuses on three distinct regulatory periods: 2010–2014 (pre-quota), 2015–2019 (post-quota introduction), and 2020–2024 (recent trends). The changes in the representation of women directors across three categories: non-independent non-executive, executive, and independent women directors is investigated. The results show that the percentage of female directors on corporate boards has been steadily rising, while representation varies by category.
2010–2014: Pre-Quotas Implementation
During the period from 2010 to 2014, prior to the implementation of quotas, the representation of women on corporate boards remained relatively low across different roles. Non-independent, non-executive women directors comprised an average of 1.81% of board members, while executive women directors accounted for an average of 1.60%.
Independent women directors, although slightly higher in representation, averaged 2.09%. Overall, the total proportion of women directors on corporate boards during this pre-quota era stood at a modest 5.72%.
This data highlights the underrepresentation of women in leadership roles during this period, underscoring the need for policy interventions to address gender disparity.
2015–2019: Post-Quotas Introduction
The implementation of gender quota legislation in India, particularly through the Companies Act, 2013, significantly enhanced the representation of women on corporate boards. This landmark legislation mandated that all listed companies and certain public companies meeting specified thresholds must reserve at least one board seat for a woman director. This requirement represented a critical step in addressing gender disparity and fostering inclusivity within corporate leadership roles.
The introduction of gender quotas had a significant influence on board composition, with companies largely complying by appointing women as independent directors. This compliance led to a dramatic rise in the representation of women in independent director roles. The percentage of independent women directors surged from 2.09% in the pre-quota period (2010–2014) to 7.05% post-implementation (2015-2019), marking the most notable growth among all categories.
Additionally, the percentage of non-independent, non-executive women directors increased from an average of 1.81% during 2010–2014 to 3.59%, while executive women directors experienced a modest rise from 1.60% to 2.05%. Overall, the total proportion of women directors on Indian corporate boards nearly doubled, rising from 5.72% during 2010–2014 to 12.79% post-quota.
This substantial improvement highlights the effectiveness of the Companies Act, 2013, in driving gender diversity and promoting a more equitable corporate governance structure. The rise in women directors, particularly in independent roles, reflects a significant shift toward greater inclusivity in corporate leadership.
2020–2024: Recent Trends
In the 2020–2024 period, the representation of women directors on corporate boards in India was further bolstered by the Securities and Exchange Board of India (SEBI). SEBI introduced additional regulations mandating that all listed companies reserve at least one board seat for an independent woman director. This regulation complemented the earlier requirements of the Companies Act, 2013, by emphasizing the inclusion of independent women directors in influential and decision-making roles.
The representation of women directors exhibited mixed trends during this phase. As compared to the phase extending from 2015-19, non-independent, non-executive women directors experienced a slight decline, decreasing from 3.59% to 3.12%. Similarly, executive women directors remained relatively stable, with a marginal drop from 2.05% to 2.01%. In contrast, independent women directors continued their upward trajectory, growing from 7.05% in the post-quotas period to an impressive 11.41%. This substantial growth reflects the strengthening role of women in independent board positions, which are often associated with greater governance power.
Overall, the total proportion of women directors increased further from 12.79% to 16.62%, underscoring the combined impact of legislative and regulatory measures in advancing gender diversity in corporate governance. This sustained progress highlights the effectiveness of SEBI’s independent director mandate in fostering inclusivity on corporate boards, even as representation among executive and non-executive categories has plateaued.
A snapshot of growth analysis by category
Over the period from 2010 to 2024, the representation of non-independent, non-executive women directors on corporate boards more than doubled. In 2010, their presence was recorded at 1.5%, which increased to 3.5% by 2024, reflecting a significant growth of 133.33%. In relation to executive women directors, their presence grew to 2.2% in 2024 from 1.3% in 2010, marking a notable growth of 69.23%. This upward trend demonstrates ongoing efforts to enhance gender inclusivity within executive leadership roles over the 14-year period.
From 2010 to 2024, the representation of independent women directors on corporate boards experienced remarkable growth. Starting at 2.0% in 2010, their presence surged to 12.0% by 2024, reflecting an impressive increase of 500%. This significant rise highlights the transformative progress in promoting women’s participation in independent leadership positions over the 14-year period.
As observed, independent women directors became the primary focus for compliance with gender diversity regulations post-2013–2014. However, growth in the executive women director category has been modest compared to others. Despite regulatory interventions, their representation remains a challenge.
The 30% club analysis
According to Kanter’s theory, when women directors have a presence of less than 30%, they have a mere and token presence as they may not be able to exercise much influence on board decision-making.
Building on Kanter’s theoretical framework, a rise in the proportion of women on boards influences the value women bring to the boardroom. The graphical representation below shows that in 2014, only 3.80% of NIFTY 500 companies had at least thirty percent female directors on board. In 2024, there was a marked increase, with 12 percent of top-listed 500 companies having at least 30% of women directors on the board. This shows a growing recognition of the value that diverse perspectives bring to decision-making, potentially reducing the gender gap on Indian boards.
The Road Ahead
The gender quotas by MCA and SEBI have been instrumental in improving board-level gender diversity in India but more effort is needed to enhance representation of women in executive director roles. Businesses must develop leadership pipelines for women to hold leadership positions. Policy improvements and training will all help to develop a more equitable business ecosystem.
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